HATSUN.NS WACC - Weighted Average Cost of Capital

The WACC of Hatsun Agro Product Ltd (HATSUN.NS) is 15.2%.

The Cost of Equity of Hatsun Agro Product Ltd (HATSUN.NS) is 16.40%.

The Cost of Debt of Hatsun Agro Product Ltd (HATSUN.NS) is 7.45%.

	Range	Selected
Cost of equity	13.60% - 19.20%	16.40%
Tax rate	25.80% - 26.10%	25.95%
Cost of debt	6.30% - 8.60%	7.45%
WACC	12.7% - 17.8%	15.2%

WACC

HATSUN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	19.20%

Tax rate	25.80%	26.10%
Debt/Equity ratio	0.12	0.12
Cost of debt	6.30%	8.60%

After-tax WACC	12.7%	17.8%


Selected WACC	15.2%

HATSUN.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for HATSUN.NS:

cost_of_equity (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.